BILL ANALYSIS S.B. 1054 By: Shapiro Intergovernmental Relations 04-11-95 Committee Report (Unamended) BACKGROUND Under current law, Texas cities have no authority to raise revenue other than the taxing power granted by law. This prevents cities from exploring other methods of raising revenue. With the spiraling costs of providing basic services to city residents and the federal mandates placed on local governments, municipal budgets cannot fund many other services, such as water, wastewater, and street improvements. PURPOSE As proposed, S.B. 1054 authorizes a municipality to create and add a fee to the utility bill of a municipality-owned utility system; requires the fee to be maintained in a separate fund for the purpose of infrastructure projects. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 402.001, Local Government Code, by adding Subsections (e) and (f), as follows: (e) Authorizes a municipality, by ordinance, to add a fee to the utility bill of a municipality-owned utility system. Provides that the fee may not exceed $3.00 per month, is payable at intervals determined by the governing body of the municipality, and shall be maintained in a segregated account for certain street and capital improvement projects. (f) Provides that a municipality is not eligible to impose a fee under Subsection (e) of this section if the municipality imposes a similar fee by virtue of authority in its charter. SECTION 2. Emergency clause. Effective date: 90 days after adjournment.